How VCs Think About Midwest Startups with Sramana Mitra from Udemy

I really find Midwestern investors very interesting to talk to. While the broader trends are the same throughout the US, I find Midwestern investors to be uniquely pragmatic. Their feet are much more firmly planted on the ground. We see a lot of investors in the Midwest very interested in good fundamentals business. They’re often more interested in capital efficient startups. Early exits at modest multiples are much more acceptable with Midwest investors.

If you want to build a Unicorn startup or get financing from outside your own geography, that is perfectly acceptable today too. As an entrepreneur building your startup in the Midwest, however, you may have more financing options within your own geography with investors looking for more reasonable investment and outcomes.

Raising money is a low probability game. You need to understand how investors think to be able to raise money successfully for your startup.

During this course, I will be teaching how investors in the Midwest of the United States think about and analyze startups. We will have in-depth conversations around startups with several real world investors.

Designed for tech entrepreneurs and aspiring entrepreneurs interested in building startups in the Midwest, this course provides insights into the minds of several investors operating in this region for many years in their own words.

We hope you will join us.

The 1Mby1M courses are all heavily based on interview-based case studies on Innovation, Business Models, Go To Market Strategies, Validation Principles, and various other nuances of an entrepreneur's journey. We offer extensive opportunities for entrepreneurs to learn the lessons from the trenches from successful entrepreneurs who have done it before and Investors who support their ambition.

What's inside

Learning objectives

Through in-depth interviews with prominent investors, learn how investors think about midwest startups.
What investor-entrepreneur fit is and how to look for it before looking for funding.
Why 99% of entrepreneurs who seek funding get rejected by vcs.
Why traditional vcs only invest in hyper growth startups.

What the key considerations are for investors when they evaluate startups.
How entrepreneurs can position themselves for success while building a startup.
What some of the common mistakes are that entrepreneurs make when pitching their startups to vcs.
The fastest way to find the relevant sources of funding when building a startup in the midwest.

Through in-depth interviews with prominent investors, learn how investors think about midwest startups.
What investor-entrepreneur fit is and how to look for it before looking for funding.
Why 99% of entrepreneurs who seek funding get rejected by vcs.
Why traditional vcs only invest in hyper growth startups.
What the key considerations are for investors when they evaluate startups.
How entrepreneurs can position themselves for success while building a startup.
What some of the common mistakes are that entrepreneurs make when pitching their startups to vcs.
The fastest way to find the relevant sources of funding when building a startup in the midwest.

Syllabus

Understand how investors in the US Midwest analyze startups.

Introduction

How Do Investors Think About Midwest Startups?

Discussion on how to win the low probability game of startup fundraising.

Max Brickman, Founder at Heartland Ventures, talks about his firm’s investment thesis.

Mark Achler, Managing Director, MATH Venture Partners, discusses their investment strategy and the industry trends. This discussion took place in 2017 and the next lecture is our next conversation in 2021.

Mark Achler, Managing Director at MATH Venture Partners, focuses on B-to-B selling as a key factor in startup success.

Mark Hasebroock is Founder at Dundee Venture Capital, based in Omaha, Nebraska. During this podcast interview, Mark tells us the firm invests in the Midwest, likes small, capital-efficient deals and are open to early exits.

Ira Weiss, General Partner at Hyde Park Venture Partners based in Chicago, talks about venture activity in the Midwest during this podcast interview.

George Spencer, Senior Managing Director at Seyen Capital, invests in SaaS companies, mostly in the Midwest, from a small fund out of Chicago. This podcast interview includes an excellent discussion on ideal levels of capitalization for good exit prices.

Please pick your favorite case studies from the course and run them through a validation and positioning exercise. Use the 1Mby1M Self-Assessment questionnaire and try to answer each question in it.

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Features interviews with investors from firms like Heartland Ventures, MATH Venture Partners, Dundee Venture Capital, Hyde Park Venture Partners, and Seyen Capital, offering diverse perspectives

Explores the nuances of securing funding in the Midwest, where investors often prioritize capital-efficient startups and are open to early exits at modest multiples

Examines investor-entrepreneur fit, which is a critical factor to consider before seeking funding, potentially saving entrepreneurs time and resources

Includes a discussion from 2017, which may not reflect current market conditions, but is followed by a conversation in 2021, offering a more up-to-date perspective

Recommends using the 1Mby1M Self-Assessment questionnaire, which may require additional time and effort to complete, but could provide valuable insights

Reviews summary

Vc insights for midwest startups

According to learners, this course offers valuable insights directly from investors, focusing specifically on how VCs in the US Midwest evaluate startups. Students found the content highly relevant for entrepreneurs operating in the region, providing practical perspectives on fundraising strategies and investor expectations. While some interviews are from earlier years, the core principles and discussions are perceived as largely helpful for navigating the unique landscape of Midwest venture capital.

Some interviews are several years old.

"Noticed some interviews were from 2017."

"Wish all interviews were more recent."

"The 2021 interviews felt more current."

Offers actionable advice for raising funds.

"Gave me practical tips for engaging with investors."

"Helped me understand the fundraising process better."

"Useful strategies for pitching and positioning."

Tailored for entrepreneurs in the region.

"Relevant for anyone building a startup in the Midwest."

"Insights specific to the Midwest ecosystem."

"The focus on Midwest VCs is unique and valuable."

Get perspectives from real VCs.

"The interviews with VCs provided great insights."

"Learning how VCs evaluate startups was very helpful."

"Hearing directly from investors in the Midwest was key."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in How VCs Think About Midwest Startups with Sramana Mitra with these activities:

Review Startup Valuation Methods

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Refresh your understanding of startup valuation methods to better understand how VCs assess potential investments.

Browse courses on Startup Valuation

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Research common startup valuation techniques.
Practice applying these techniques to sample startups.

Read 'Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist'

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Gain a deeper understanding of venture capital deals and negotiations from both the entrepreneur's and investor's perspectives.

View Startup Boards: A Field Guide to Building and... on Amazon

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Read the book cover to cover.
Take notes on key concepts and deal terms.
Reflect on how these concepts apply to Midwest startups.

Compile a List of Midwest-Focused VCs

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Identify and categorize venture capital firms that actively invest in Midwest startups to build a targeted fundraising list.

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Compile contact information for each firm.
Research VC firms based in the Midwest.
Categorize firms by investment stage and focus.

Four other activities

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Show all seven activities

Read 'Zero to One: Notes on Startups, or How to Build the Future'

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Explore broader startup strategies and philosophies to complement the Midwest-specific insights from the course.

View Zero to One Summary on Amazon

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Read the book and highlight key takeaways.
Consider how Thiel's ideas apply to Midwest startups.
Discuss the book with other entrepreneurs.

Write a Blog Post: 'Midwest Startup Ecosystem'

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Solidify your understanding of the Midwest startup ecosystem by researching and writing a blog post about its unique characteristics and opportunities.

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Research the Midwest startup ecosystem.
Outline the key points of your blog post.
Write and edit your blog post.

Develop a Pitch Deck for a Hypothetical Midwest Startup

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Apply the insights gained from the course by creating a pitch deck tailored to the preferences of Midwest VCs.

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Develop a business plan for a Midwest startup.
Create a compelling pitch deck.
Get feedback on your pitch deck from peers.

Attend Midwest Startup Events

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Connect with Midwest investors and entrepreneurs in person to build relationships and learn about the local ecosystem.

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Identify relevant startup events in the Midwest.
Attend the events and network with attendees.
Follow up with contacts after the events.

Career center

Learners who complete How VCs Think About Midwest Startups with Sramana Mitra will develop knowledge and skills that may be useful to these careers:

Angel Investor

An Angel Investor provides capital for startups, typically in exchange for equity. This course is invaluable for anyone considering angel investing, especially in the Midwest region. The course provides insights into the minds of investors operating in this region for many years in their own words. This understanding of investor mindsets, as emphasized in the course, may help you assess the potential for return on investment and mitigate risks. This course provides specific knowledge helpful for performing due diligence and making informed investment decisions.

See salaries and explore the career path for Angel Investor

Chief Executive Officer

The Chief Executive Officer is in charge of the overall management of the company. The CEO must understand how to raise capital to guide the company. This course provides a detailed overview of how venture capitalists located in the Midwest of the United States think about startups. The course contains real world investors discussing their investment theses. This can help the CEO prepare for pitching to investors. The CEO should take this course to gain insights into the funding landscape.

See salaries and explore the career path for Chief Executive Officer

Fundraising Manager

A Fundraising Manager develops and executes strategies to raise capital for organizations, whether they are non-profits or startups. This course, tailored to understanding how venture capitalists think about Midwest startups, offers a deep dive into the mindset and evaluation criteria of investors. Grasping the nuances of investor preferences, risk tolerance, and regional investment trends, as emphasized in the course, can significantly enhance your ability to craft compelling fundraising pitches. The course focuses on investor-entrepreneur fit, which would be valuable to a fundraising manager. This enables you to more effectively target potential investors and secure the necessary funding for your organization.

See salaries and explore the career path for Fundraising Manager

Venture Capital Analyst

A Venture Capital Analyst supports investment decisions by conducting market research and financial analysis of startups. This course specifically addresses how investors in the Midwest analyze startups, offering a glimpse into the criteria and thought processes of venture capitalists in this region. Understanding regional investment trends and preferences, as highlighted in the course, helps you assess the viability and potential of startups seeking funding. The course features interviews with investors, which would be valuable in understanding investment theses. This course may also help you position yourself in the Midwest.

See salaries and explore the career path for Venture Capital Analyst

Investment Associate

An Investment Associate helps manage investment portfolios, conduct due diligence on potential investments, and prepare investment recommendations. This course, which focuses on how venture capitalists evaluate Midwest startups, provides critical insights into the investment decision-making process. Understanding investor preferences and the criteria they use to assess startups, as emphasized in the course, is essential for identifying promising investment opportunities. The course's real-world examples and interviews with investors enhance your ability to analyze financial models and assess the potential for returns on investment. This may help you formulate your investment recommendations.

See salaries and explore the career path for Investment Associate

Startup Consultant

As a Startup Consultant, you guide new businesses through their early stages, offering advice on business models, fundraising strategies, and market positioning. This course, focused on how venture capitalists in the Midwest evaluate startups, could be invaluable in shaping your consulting advice. The course focuses on investment theses. This course may help you understand the nuances of capital-efficient startups and the expectations of Midwest investors, which are crucial for tailoring your recommendations to the local ecosystem. Understanding investor perspectives provides a competitive edge in guiding startups toward successful funding rounds and sustainable growth.

See salaries and explore the career path for Startup Consultant

Portfolio Manager

A Portfolio Manager is responsible for making investment decisions and managing investment portfolios to achieve specific financial goals for clients or organizations. This course, which provides insights into how venture capitalists in the Midwest evaluate startups, can significantly enhance your ability to identify promising investment opportunities. Understanding the investment strategies and preferences of venture capitalists in the region, as highlighted in the course's interviews with investors, enables you to better assess the risk and growth potential of startups. It may also help you refine your portfolio allocation strategies to align with market trends.

See salaries and explore the career path for Portfolio Manager

Business Development Manager

A Business Development Manager identifies and pursues new business opportunities for a company, often involving partnerships, investments, or market expansion. This course provides a framework for evaluating startups from an investor's perspective. It dives into strategies for raising capital. Furthermore, understanding the investment preferences and risk profiles of venture capitalists in the Midwest through the course's interviews with investors can help you better assess partnership opportunities and identify targets for investment or acquisition. This course may help you tailor your business development strategies to align with the needs and expectations of the Midwest market.

See salaries and explore the career path for Business Development Manager

Financial Analyst

As a Financial Analyst, you evaluate financial data, prepare reports, and provide investment recommendations. This course specifically helps understand how investors analyze startups. The course focuses on the investor-entrepreneur dynamic, and discusses common mistakes. This understanding is crucial for evaluating the financial viability and growth potential of companies, especially in the context of securing funding. This knowledge gained may allow more accuracy when modeling projections.

See salaries and explore the career path for Financial Analyst

Market Research Analyst

A Market Research Analyst analyzes market trends, consumer behavior, and competitor activity to provide insights that inform business decisions. This course, with its focus on how venture capitalists in the Midwest analyze startups, provides a valuable understanding of the regional investment landscape. Understanding the types of companies venture capitalists are drawn to, as highlighted in the interviews with investors, can help you better analyze market trends and identify promising sectors. The course also covers capital-efficient startups, which may aid in your assessment of market opportunities. This course may help you provide more targeted recommendations.

See salaries and explore the career path for Market Research Analyst

Investment Banking Analyst

An Investment Banking Analyst supports senior bankers in advising companies on mergers, acquisitions, and capital raising activities. This course, with its focus on how venture capitalists in the Midwest analyze startups, may offer a valuable perspective on the investment landscape. Understanding their decision-making processes, risk tolerance, and investment preferences, as emphasized in the course, helps you better assess the viability and attractiveness of startups. The course may help you refine your advising strategies.

See salaries and explore the career path for Investment Banking Analyst

Business Strategist

A Business Strategist develops and implements strategic plans to achieve a company's goals. This course offers a valuable perspective on the startup ecosystem in the Midwest. The course emphasizes the importance of investor-entrepreneur fit. Such understanding, covered in this course, is valuable in developing strategies. Furthermore, understanding investor expectations, risk tolerance, and investment preferences, as highlighted in the course, can help you better align business strategies with market realities. It may also help you formulate more effective business strategies.

See salaries and explore the career path for Business Strategist

Business Operations Manager

A Business Operations Manager ensures that a company's internal operations run smoothly and efficiently. This course offers a unique understanding of the preferences and expectations of venture capitalists in the Midwest region. Understanding investor perspectives, as emphasized in the course, may help you optimize internal processes to attract investment. The course may also help you align business operations with the needs of investors.

See salaries and explore the career path for Business Operations Manager

Chief Technology Officer

The Chief Technology Officer is in charge of the technology vision and execution of a company. The CTO must understand how to raise capital to develop infrastructure. This course provides a detailed overview of how venture capitalists located in the Midwest of the United States think about startups. The course contains real world investors discussing their investment theses. This can help the CTO prepare for pitching to investors. The CTO should take this course to gain insights into the funding landscape.

See salaries and explore the career path for Chief Technology Officer

Product Manager

A Product Manager guides the lifecycle of a product. This course covers how investors consider companies in the Midwest. This is useful for pitching the product. The course focuses on investor-entrepreneur fit. This understanding gained from this course may help the product manager tailor their product to the market.

See salaries and explore the career path for Product Manager

How VCs Think About Midwest Startups with Sramana Mitra

What's inside

Learning objectives

Syllabus

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Reviews summary

Vc insights for midwest startups

Activities

Career center

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